More than Numbers

About Me

Not Saying

I don't usually blog anonymously, but I don't want my friends stumbling on this because I know money is a lot tighter for them. I can't be honest without seeming like I have a lot, because I do. I'm really not bragging, I do feel that money is how people with no talent keep score, and that it doesn't mean much for self worth or anything.
I am in my 40s and realized years ago that having extra money (more than you need) gives you freedom and less anxiety. I really enjoy doing new things, and I've made a point of learning about money and finances and investments, and have tried many different ways to get income.

Update Feb 4

Went to the accountants today. I didn't bring one of my 1099s and W2s, but everything else is done and accounted for. I am hoping I will be able to contribute a bit to my ROTH IRA.

I got my log in info for my TSP, and found out the deduction I asked for hadn't gone through. I have the signed paperwork so I don't know why, but I'll add it to my things to do at HR next week. I think I might want to up it to 10% instead of 5. This is a percentage from 1/2 my income, so will end up being 5% of my total income. I'm not that crazy about the fund choices, right now I have everything in an Government securities fund which is making like 4%. There are a couple of bond index and other index funds I might like too.

4 Responses to “Update Feb 4”

I'm not familiar with your government securities fund, do you only hold bond or interest instruments? Do you hold any equities [stock]? The better, low MER funds have made significant gains in the past two years.

There is considerable risk in bonds in a low interest rate environment as inflation can significantly lower purchasing power. We've all seen increases at the gas pumps and grocery store.

Thanks for the comments! Here is info about the G fund. All my other pension funds are in stocks or mutual funds, so I may keep some monies in here just for 'balance'. I will also be investing in the index funds they have - they offer 4 - S&P, Dow, Barclays Capital U.S. Aggregate Bond, and Morgan Stanley Capital International EAFE. There are also a few 'lifestyle' funds that are a combination of these funds and geared towards your age group (and if you're already retired, etc). Administration fees for all the funds is 0.025%. I usually do S&P index accounts but I might try some of the other ones too. I'll update when I decide (and when I get my form filled in to up my contribution).

Fund Objective

The G Fund's investment objective is to produce a rate of return that is higher than inflation while avoiding exposure to credit (default) risk and market price fluctuations.
Investment Strategy

The G Fund invests exclusively in a nonmarketable short-term U.S. Treasury security that is specially issued to the TSP. The earnings consist entirely of interest income on the security.
Risks

The G Fund is subject to inflation risk, or the possibility that your G Fund investment will not grow enough to offset the reduction in purchasing power that results from inflation.
Rewards

The payment of G Fund principal and interest is guaranteed by the U.S. Government. This means that the U.S. Government will always make the required payments. In other words, your G Fund investment is not subject to credit (default) risk.

The G Fund interest rate calculation is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity. As a result, participants who invest in the G Fund are rewarded with a long-term rate on what is essentially a short-term security. Generally, long-term interest rates are higher than short-term rates.

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